Banks in Mauritius approve Rs 4.55 bn credit under SME financing scheme
The MCB and SBM were the banks favoured by Small and Medium Enterprises, with the former accepting 1607 applications to the tune of Rs 2.3 billion, representing a 52.5% share, while the latter accepted 850 application for an amount of Rs 836.7 million. (Image:negosentro.com)
The Mauritius Commercial Bank Limited (MCB) captured the highest market share in terms of providing credit facilities under the SME financing scheme, according to a report released by the Bank of Mauritius for the period 1 December 2012 to 28 February 2015.
Total loan applications across all banks amounted to Rs 5.8 billion of which 170 applicants were rejected and 78.9% was sanctioned for an amount of Rs 4.55 billion.
Incidentally, the Mauritius Post and Cooperative Bank Ltd (MPCB) rejected the maximum applications, with the 49 applicants rejected representing 20.6% of applications received during the period under review.
The MCB was the preferred bank for SMEs, which received 1633 applications for an amount of Rs 3.0 billion and accepted applications to the tune of Rs 2.3 billion, representing a 52.5% share.
SBM ranked second in the list with 892 application received for an amount of Rs 962.9 million, out of which Rs 836.7 million was approved.
Other banks, namely Barclays Bank Mauritius Limited and The Hongkong and Shanghai Banking Corporation Limited, received requests to sanction Rs 429.5 million and Rs 159.3 million respectively as loan applications, and all the loan applications received were approved by both banks.
The amount outstanding as at end-February 2015 stood at Rs 1.7 billion and MCB, SBM and Barclays recorded the largest amount of outstanding loans from SMEs.
On the break up of facilities in terms of nature of financial assistance, loans comprised the bulk of the sanctioned facilities at Rs 1.98 billion, overdrafts came next at Rs 1.76 billion, followed by finance lease facilities at Rs 222.8 million.
It may be noted that under the recent budget announcement for 2015-16, the government is showing a concerted focus on growing the SME sector. The latest budget announcement of the launch of a dedicated SME Bank to provide seed capital to entrepreneurs without any need for personal guarantees showed the determination of the government to encourage entrepreneurship in the island economy, and nurture SMEs through provision of much-needed capital.